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In a real business, recording transactions and recurring items involves practical application of accounting principles. For instance, if ABC Company sells a laptop for $300 in cash, the journal entry would be a debit to the Cash account for $300 and a credit to the Sales account for $300.
In accounting, amortization is a method of obtaining the expenses incurred by an intangible asset arising from a decline in value as a result of use or the passage of time. Amortization is the acquisition cost minus the residual value of an asset, calculated in a systematic manner over an asset's useful economic life.
For example, $225K would be understood to mean $225,000, and $3.6K would be understood to mean $3,600. Multiple K's are not commonly used to represent larger numbers. In other words, it would look odd to use $1.2KK to represent $1,200,000. Ke – Is used as an abbreviation for Cost of Equity (COE).
Income is a short term inflow during the fiscal year. Expense is short term outflow during the fiscal year. An asset is a long term inflow with implications extending beyond the financial period and by the traditional view could represent unclaimed income. Alternatively, an asset could be valued at the present value of its future inflows.
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HCI—Human—Computer Interaction; HD—High Density; HDD—Hard Disk Drive; HCL—Hardware Compatibility List; HD DVD—High Definition DVD; HDL—Hardware Description Language; HDMI—High-Definition Multimedia Interface; HECI—Host Embedded Controller Interface; HF—High Frequency; HFS—Hierarchical File System; HHD—Hybrid Hard Drive
Generally Accepted Accounting Principles (GAAP) [a] is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC), [1] and is the default accounting standard used by companies based in the United States.
A separate term for the aggregation of expenses and losses does not exist. Contra-accounts are accounts with negative balances that offset other balance sheet accounts. Examples are accumulated depreciation (offset against fixed assets), and the allowance for bad debts (offset against accounts receivable). Deferred interest is also offset ...